Shopify Revenue Rises 32% to $3.74 Billion; Free Cash Flow Margin Reaches 22%

What happened

Shopify reported third-quarter 2026 revenue of $3.74 billion, up 32% from a year earlier. Free cash flow was $816 million, a 22% free cash flow margin, compared with 18% a year earlier.

Confirmed

Global impact / market context

Free cash flow is cash left after running and investing in the business. A rising margin, from 18% to 22%, means Shopify keeps more cash from each sales dollar, giving it more money to fund growth without relying on borrowed money.

Analyst inference

Gross merchandise volume, the total value of goods sold through Shopify, rose 29% to $119.145 billion. Merchant solutions revenue grew 35%, faster than subscription solutions at 20%, showing growth increasingly comes from payments and services tied to merchant sales volume.

Analyst inference

What to watch

1. The article states monthly recurring revenue reached $230 million, compared with $193 million in the third quarter of 2025, a measure of predictable subscription income. Confirmed
2. Shopify says it is expanding commerce across digital surfaces and agents, building toward commerce available everywhere, so watch whether this spending affects costs and margins. Proposed
3. Watch whether merchant solutions keeps growing faster than subscription revenue and whether the 22% free cash flow margin holds, since both affect how much cash Shopify generates. Analyst inference

Evidence

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